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- Bitmain shifts production to the U.S., enhancing supply chain efficiency amid U.S.-China trade tensions.
- Antminer S21 Pro launch this month boosts mining efficiency for North American customers.
- North America powers 44% of Bitcoin’s hashrate, with U.S. firms scaling operations amid growing market demand.
Bitmain, a major Chinese Bitcoin mining hardware maker, is expanding its production to the United States. The move is expected to make supply chains more effective. The company stated that this step would ensure that it serves North American clients better. Bitmain develops application-specific integrated circuit chips for bitcoin miners. It currently has about 90% of the current demand of the Bitcoin mining equipment marketplace.
Reasons Behind the Move
The expansion comes amid growing trade tensions between China and the US. Recently, the US expanded export controls on high-bandwidth memory chips. China responded by banning the sale of critical minerals to the US. These restrictions have caused delays for US miners waiting for hardware from China. Some miners have had to wait up to two months to get their equipment.
Bitmain plans to release a new batch of Antminer S21 Pro miners in December. These miners will provide a “significant boost” to its industry partners. The company says the move will support the Bitcoin mining community in North America.
US Market Impact
The expansion helps Bitmain improve its standing in the US market. The US and Canada currently have more than 44% of the overall hashrate of the Bitcoin network. Out of the four biggest Bitcoin miners, three are based in the United States of America. Some of the significant market players include MARA Holdings, Core Scientific, CleanSpark, and Riot Platforms. These miners will benefit from the new production line in the US.
The US Customs and Border Protection delayed Bitmain’s ASIC machines at US ports of entry. Reports say some miners had to wait for up to two months to get their machines. This delay highlights the challenges US miners face due to trade restrictions. Some delays have affected Bitcoin mining operations, slowing growth in the US.
Despite these issues, Bitmain has not been involved in any supply chain investigation, according to the company. It is focused on meeting demand in the US, which continues to grow.
US Political Climate and Bitcoin Mining
The expansion of Bitmain’s production line aligns with political trends in the US. Former President Donald Trump has voiced support for making Bitcoin mining hardware in the US. He claims it will help the country become “energy dominant.” This shift could bring more Bitcoin mining operations to the US in the coming years.
In addition, Trump’s proposals for tariffs on imports could affect Bitcoin mining hardware. If tariffs are imposed, it may create more obstacles for companies like Bitmain. These potential tariffs may also make it harder for US miners to access equipment from overseas.